Rosfinmonitoring Reports Increase in Crypto Transactions in Russia
The director of Rosfinmonitoring, Yuri Chikhanchin, recently highlighted the growing popularity of cryptocurrency in Russia. In an interview with Izvestia, Chikhanchin revealed that over 185,000 crypto transactions were completed in the first nine months of 2023, surpassing the total for the entire year of 2022.
Chikhanchin emphasized the need for regulation in the crypto industry due to its involvement in illicit activities. He called for a regulatory framework to be established as soon as possible, even if it means banning cryptocurrencies altogether. According to Chikhanchin, it is crucial to understand the rules of the game and address the use of crypto by drug dealers, terrorists, and corrupt officials.
Increased Volume and Tracking Tools
In addition to the rise in transactions, Chikhanchin noted that the volume of funds moved through crypto transactions had nearly doubled during the same period. To monitor these transactions, Rosfinmonitoring has developed a software toolkit called “Transparent Blockchain” in partnership with VTB bank.
This tool allows tracking transactions on more than 30 blockchains and provides access to the identities of both senders and receivers. It has garnered interest from Arab, African, and Latin American countries and can assist banks in ensuring compliance with crypto-related tasks.
The Digital Ruble and Transparent Operations
While expressing concerns about cryptocurrency, Chikhanchin shared a positive view of the upcoming digital ruble, Russia’s central bank digital currency currently in pilot stages. He stated that the digital ruble would enable transparent calculations by providing a clear sequence of operations.
Hot Take: Regulation Crucial for Crypto Growth
The rising number of crypto transactions in Russia highlights the need for effective regulation in the industry. Director Yuri Chikhanchin urges the establishment of a regulatory framework to address the involvement of cryptocurrencies in illicit activities, such as drug trafficking and corruption. While the volume of funds moved through crypto transactions has also increased, tracking tools like Rosfinmonitoring’s “Transparent Blockchain” offer a means to monitor and identify transaction participants. As Russia explores the development of a digital ruble, transparency and accountability remain key considerations. By implementing appropriate regulations, Russia can create a safer and more stable environment for crypto adoption and growth.
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